Taylor v. Johnston
Supreme Court of California
539 P.2d 425 (1975)
Taylor (plaintiff) and Johnston (defendant) bred and raced thoroughbred horses in California and had contracted to breed Taylor's two mares to Johnston's stallion, Fleet Nasrullah, in 1966. After Johnston sold the stallion to Kentucky buyers and told Taylor he was "released" from his reservations, Taylor insisted the contract still bound Johnston, and Johnston arranged for the mares to be bred in Kentucky instead. Once the mares arrived, the stallion's new manager repeatedly told Taylor's agent the horse was unavailable because shareholders had priority, though she said he could still book an open date. After repeated scheduling failures, Taylor's agent gave up and bred both mares to a different horse. Taylor sued for breach of contract, and the trial court awarded him over $103,000 in damages; Johnston appealed.
Whether Johnston's conduct after selling the stallion amounted to an anticipatory repudiation of his breeding contract with Taylor.